Snelling sees Olympic Dam hope

BHP Billiton’s $30 billion expansion of Olympic Dam is more than likely to go ahead, underpinning South Australian economic growth. according to Treasurer Jack Snelling.

The mining giant is mulling a massive expansion of its copper/uranium mine in the north of South Australia amid talk that its capital cost might exceed the company’s appetite in the current environment.

Mr Snelling, presenting the state budget, repeated his government’s position that it had “no intention" of offering BHP an extension on its year-end start date.

“I’m very very confident that BHP’s Olympic Dam expansion is going to go ahead," he said.

Mr Snelling said he acknowledged there was now “economic turbulence" but he pointed out that the mine could last for 90 years or more.

The government is forecasting an economic growth rate of 2.75 per cent next year and about 3 per cent over the following three years.

Olympic Dam underpins those forecasts with the state treasury saying the huge project will contribute about 0.5 per cent to annual growth.

Employment is forecast to rise at a rate of about 1.5 per cent a year and Olympic Dam is expected to account for 0.25 per cent of that annually.